Encounter Moore's Law Philips LED bulbs cut prices by more than 20%

“Unlike traditional lighting, the LED lighting industry is more like the electronics industry, but in the electronics industry, Moore's Law can't be escaped.” The price cut for Philips LED bulbs recently listed in Taiwan, Zhang Xu, Philips Public Relations Manager, China, July 18 In an interview with the Securities Times reporter, he said.

On July 15, Philips announced the launch of a new generation of LED bulbs in Taiwan. It is reported that the series of products under the same lumens (light efficiency unit), energy saving 20% ​​compared with the previous generation, but the price has dropped significantly. Among them, the entry-level 7-watt LED bulb 399 Taiwan dollars (equivalent to about 82 yuan) compared with last year's entry-level models, the price cut 20%. The price reduction of some products reached 33.39%.

Zhang Xu explained the price reduction phenomenon with Moore's Law. The simple explanation of Moore's Law is that the performance of computers that can be bought for every dollar will be more than doubled every 18 months. This law reveals the speed of information technology. Zhang Xu said that Philips has a relatively complete industrial chain in the field of LED lighting, which can improve performance and reduce costs in all aspects of the industry chain, thus making the pricing of terminal lighting products more advantageous. At the same time, with the increase in shipments of LED lighting products, the company's scale effect appears, and the cost is further reduced, which will ultimately benefit consumers.

“In fact, the pricing of the same products in mainland China is even cheaper.” Zhang Xu said that the new products released in Taiwan have been listed on the mainland at the beginning of this year, and the market-recommended retail price after conversion is still lower than that in Taiwan. .

This means that the price of Philips lighting LED bulbs has declined compared to previous ones. In this regard, some insiders pointed out that since last year, LED lighting upstream chips due to overcapacity, after a wave of price cuts, the price of chips has dropped by more than 50%, and now it is transmitted downstream, and the price war of lighting products is inevitable.

However, Philips Lumileds in the middle of the industry does not recognize the price war. Zhou Xuejun, director of the company's Asia-Pacific market, told reporters that last year's chip price drop was only part of the low- and medium-power products, and with the rapid rebound of the market at the beginning of this year, the chip price returned to the stable range, there is not much fluctuation, lighting device products Still in short supply.

The news of Philips' price cuts has caused concern among the industry's price wars. Zhang Chao, the director of the listed company's Mulinsen lighting market, is not worried about this.

"The same performance lighting products, even if Philips cut prices by 50%, still higher than our products." Zhang Chao's confidence comes from the company's product price advantage. He told reporters that unlike Philips, the company only focuses on LED lighting products. In recent years, it has rapidly spread goods throughout the country and has established 45 provincial-level distributors. "National distribution strategy has achieved remarkable results. In the first half of this year, sales have been five times higher than last year." Zhang Chao said.

Since the beginning of this year, LED lighting has recovered rapidly and the market is generally optimistic. According to the statistics of the High-tech LED Industry Research Institute (GLII), the total output value of LED indoor lighting in China in 2012 was 33.5 billion yuan, a year-on-year increase of 80%. In 2012, China's LED indoor lighting maintained a high-speed development trend. With the continuous maturity of LED application technology, the continuous improvement of quality, the price continued to drop drastically, and the efforts of many LED entrepreneurs, GLII expects LED indoor lighting market in the next few years. Will maintain a rapid development trend.

(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)

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